Authored by the expert who managed and guided the team behind the Belarus Property Pack
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What will happen in Minsk’s real estate market? Will prices go up or down? Is Minsk still a hotspot for foreign investors? How is Belarus’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Minsk, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Foreign investment in Minsk's residential real estate will increase as visa restrictions ease
The easing of visa restrictions is set to boost foreign investment in Minsk's residential real estate.
Recently, Belarus saw a $1.6 billion increase in Foreign Direct Investment, highlighting growing interest from international investors. This surge suggests that real estate, a major investment area, is catching the eye of foreign buyers.
Looking at other countries, there's a clear trend: relaxed visa policies often lead to more foreign property purchases. Take Portugal and Spain, for instance, where favorable visa programs sparked a buying spree. Minsk could see a similar pattern, especially with the new Land Code simplifying property ownership for foreigners.
In Minsk, foreign buyer inquiries and transactions are on the rise. This uptick is mirrored by more international real estate expos and agencies focusing on foreign clients. These developments show that investors are keen to explore Minsk's market, thanks to easier visa access.
With the new visa policies, foreign investors are increasingly drawn to Minsk, seeing it as a promising opportunity. The city's real estate market is becoming more accessible, making it an attractive option for those looking to invest abroad.
As visa restrictions ease, the potential for foreign investment in Minsk's real estate grows. This shift is likely to bring more international attention and capital to the city, transforming its property landscape.
Sources: Belta, CEIC Data, Aparthotel
2) Prices for luxury city-center apartments will rise steadily as wealthy buyers look for prestigious locations
In recent years, we've seen a noticeable increase in the demand for luxury apartments in the city center of Minsk. Back in the first quarter of 2024, there was a record number of apartment sales, with a 20% increase compared to 2023. This surge in transactions highlights a strong interest in city-center living, especially for high-end properties.
One of the key reasons for this trend is the growing number of high-net-worth individuals in Belarus. With 115 multimillionaires holding a combined wealth of $13 billion, there's a significant pool of affluent buyers who are likely driving the demand for prestigious addresses. These individuals often seek properties that reflect their status, and city-center luxury apartments fit the bill perfectly.
Moreover, the limited availability of prime real estate in Minsk's central districts adds to the allure. The most expensive apartments are located here, and with the average cost per square meter reaching $1,620 in early 2024, it's clear that scarcity is pushing prices upward. This limited supply, coupled with high demand, naturally leads to price increases.
Another factor contributing to the rising prices is the ongoing urban development in Minsk. The city is undergoing significant transformations with new infrastructure and high-end amenities being developed. These improvements make city-center living even more attractive to affluent buyers, further boosting demand for luxury apartments.
Sources: Charter97, OSW Commentary
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Belarus versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Eco-friendly developments in Minsk will see a rise in market value as foreign investors show more interest
Foreign investors are showing increased interest in eco-friendly developments in Minsk, and this is boosting their market value. One of the main reasons is the rising trend of foreign investment in Belarusian real estate, which saw a significant influx of $7.7 billion in 2023, with a notable portion directed towards real estate in cities like Minsk.
The Belarusian government has also played a crucial role by establishing favorable regulations and incentives for green building projects. This supportive environment makes Minsk an attractive destination for investors looking to capitalize on sustainable developments.
Additionally, global trends towards sustainable investments are influencing investor decisions. As the world becomes more conscious of environmental issues, the demand for eco-friendly properties is on the rise, and Minsk is no exception to this trend.
Sources: Aparthotel, Skadden, Belarus.by
4) Property values will rise in the Svisloch River area as waterfront developments become more popular
In recent years, we've seen a global trend where waterfront properties have become highly desirable, often commanding a significant premium in value. According to the 2023 Global Waterfront Index by Knight Frank, these properties enjoy an average premium of 118% worldwide. This trend is not just limited to beachfront homes but extends to all types of waterfront properties, including those along rivers like the Svisloch.
The demand for luxury waterfront living has surged, with a dramatic increase in searches for luxury waterfront homes. Between July 2023 and January 2024, there was a 1,500% rise in searches for such properties. This indicates a growing interest among buyers who are looking for serene and engaging lifestyles that waterfront properties offer.
Moreover, urban revitalization projects have shown significant achievements in enhancing the appeal of waterfront areas. These projects often involve restoring habitats, improving water quality, and engaging communities, which can make areas like the Svisloch River more attractive to potential buyers. Although specific details about government investment in the Svisloch River area are not provided, the trend suggests that similar initiatives could be underway.
Real estate market reports also highlight the importance of location in determining the value of waterfront properties. The allure of scenic and recreational living environments is a strong factor driving the demand for these properties. Consumer surveys consistently show a preference for such environments, as people seek to escape the hustle and bustle of city life.
Sources: World Property Journal, Unique Living, EPA
5) Rental yields in suburbs will drop as improved public transport draws more residents to city living
In recent years, Minsk has seen a significant investment in public transport infrastructure, including the development of new metro lines and the introduction of modern metro trains like the Minsk 2024. These improvements aim to increase mobility and comfort for residents, making city living more attractive.
The Minsk Metro has experienced a substantial increase in passenger traffic, with average daily traffic exceeding 150,000 passengers. This growing reliance on public transport suggests that more residents are choosing to live in the city, where they can easily access these improved services.
As more people opt for city living, property prices in city centers are likely to rise due to higher demand. This trend is often observed in cities with enhanced public transport systems, where urban living becomes more appealing. Consequently, suburban areas may see a decline in rental yields as demand shifts towards urban properties.
Reports of reduced commute times, thanks to the development of Line 3 of the Minsk Metro and the introduction of modern trains, further enhance the appeal of city living. This aligns with global trends where improved public transport leads to increased urbanization.
Sources: Rolling Stock World, Norada Real Estate
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6) Property prices in Minsk's new suburbs will rise slowly because of too many homes and slow infrastructure development
In 2023, newly developed suburbs in Minsk faced high vacancy rates, meaning many homes were left unsold.
This oversupply of housing means prices in these areas are rising more slowly than expected. When there are more homes than buyers, it naturally affects how quickly prices can climb.
Another issue is that infrastructure development often lags behind housing construction in these suburbs. Without fully developed public transportation and amenities, these areas become less appealing to potential buyers.
Many buyers still prefer urban living because cities offer better amenities and infrastructure. This preference means fewer people are interested in suburban homes, which slows down price growth in those areas.
In Minsk, this trend is clear as urban areas continue to attract more buyers, leaving suburban developments struggling to keep up.
7) Rental yields in Minsk will rise in areas with new tech startups due to higher demand for short-term rentals
In 2023 and 2024, Minsk saw a significant increase in the number of tech startups, particularly around the Hi-Tech Park, which is a major hub for high-tech companies. This growth in the tech sector has been supported by a favorable tax and legal regime designed to attract these businesses.
The demand for short-term rentals in Minsk has been rising, especially in areas near tech hubs. This is largely due to the influx of international and domestic tourists, as well as tech workers who prefer flexible living arrangements. In fact, there was a notable increase in trips sold and tourist numbers compared to 2021.
Additionally, the local IT industry in Belarus, known for its high-quality developers, has contributed to the growth of tech sector employment in Minsk. This has led to an increased demand for rental properties, particularly in areas favored by students and tech workers. The ongoing investment in tech infrastructure, such as office buildings and residential areas, further supports this trend.
Sources: Colab, StartupBlink
8) Affordable housing in Minsk will become more popular, causing prices to rise moderately in this segment
In recent years, the demand for affordable housing in Minsk has been on the rise. This trend is evident from the low vacancy rate for high-end apartments, which has dropped to under 5%. Such a low vacancy rate indicates a strong market for all types of housing, including affordable options. Additionally, over 20% of homebuyers in Belarus are purchasing properties as investment assets, which includes affordable housing projects.
The population of Minsk has grown significantly, with an 11.2% increase since the last census in 2009. This growth is largely due to migration from other parts of the country, leading to a higher demand for housing. As Minsk accounts for 21% of the total population of Belarus, the urbanization trend is further driving the need for affordable housing options.
Government initiatives have also played a role in boosting the affordable housing market. Although the state is stepping back from building social housing, subsidies and affordable housing plans have laid the groundwork for private investment in this sector. This has encouraged developers to focus on affordable housing projects, contributing to the building boom in Minsk.
Transaction volumes in the real estate market have surged, with a notable increase in the number of apartments sold in early 2024 compared to the previous year. This indicates a growing readiness among people to invest in real estate, including affordable segments. The average monthly rent for a two-bedroom apartment in Minsk has risen by 8% since 2023, driven by higher demand for rental housing. This shift towards more affordable segments is contributing to the price hike, making rental properties more competitive.
Sources: Eurasian Research
We have made this infographic to give you a quick and clear snapshot of the property market in Belarus. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Rent in older Soviet-era buildings will drop as newer, modern options emerge
In recent years, we've seen a significant increase in the construction and availability of new residential developments in Minsk. Projects like Minsk World have been actively building modern residential houses and infrastructure, offering high-quality amenities that attract tenants away from older Soviet-era buildings.
There's a noticeable rise in consumer preference for modern amenities and energy-efficient buildings. New developments often include advanced insulation and energy-efficient designs, making them more appealing to tenants compared to the outdated infrastructure of Soviet-era buildings.
Surveys have shown tenant dissatisfaction with the insulation, material quality, and structural design of older buildings. This dissatisfaction is likely to drive tenants towards newer, better-maintained apartments, which also tend to command higher rental prices due to their modern infrastructure and desirable locations.
Sources: Realting, UNECE, Belta
10) Airbnb-style investments in Minsk will become less profitable due to stricter short-term rental regulations
Stricter regulations on short-term rentals can significantly impact the profitability of Airbnb-style investments in Minsk. In the past, cities like New York and Barcelona have introduced tough regulations, leading to increased enforcement actions against unlicensed rentals. This trend suggests that if Minsk follows suit, it could face similar challenges.
One of the main issues is the rising fines or penalties for non-compliance. Cities such as Barcelona and Lisbon have already implemented hefty fines, which could increase operational costs for short-term rental owners in Minsk. Additionally, new licensing requirements, similar to those in France and Spain, could add to these costs and create more regulatory hurdles.
Moreover, statistical data from other cities shows a decline in Airbnb listings where strict regulations have been enforced. For instance, New York City saw a significant reduction in available listings after implementing stringent rules. This decline could be mirrored in Minsk, affecting the overall profitability of short-term rental investments.
Sources: Enso Connect
11) Demand for properties near Minsk National Airport will grow as the airport expands and boosts international connectivity
Properties near the Minsk National Airport are becoming more attractive due to several key developments. In 2023, the airport saw a significant increase in passenger traffic, with a 28.5% rise compared to the previous year. This growing number of travelers, exceeding 5 million annually, has led to plans for new infrastructure, including a new passenger terminal.
The airport's focus on attracting more airlines and developing new international routes has increased its connectivity. With flights operated by 10 carriers regularly, the airport is becoming a hub for international travel, making nearby properties more appealing.
Government plans to expand the airport further include constructing a railway link to the capital and additional car parks. These improvements are part of a long-term strategy to enhance the airport's facilities, which in turn boosts the attractiveness of the surrounding area for both residential and commercial purposes.
Sources: Belarus.by, Belarus.by
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12) Sustainable residential developments in Minsk will become more attractive due to new tax incentives for green buildings
Belarus is ramping up support for green building projects with new financial incentives.
In Minsk, developers are getting a boost from the government through grants and tax exemptions aimed at promoting eco-friendly construction. This is a game-changer for those looking to integrate sustainable features into their residential projects. Imagine a city where solar panels and energy-efficient systems are the norm, not the exception.
The city is already seeing a rise in green buildings, with projects like the National Library of Belarus and the Green Housing Complex leading the way. These landmarks are not just architectural feats; they are symbols of a growing trend towards sustainability in urban development.
People in Minsk are increasingly interested in sustainable living, which is pushing developers to focus more on eco-friendly housing. This shift in consumer preference is making green residential buildings more attractive investments. Developers are catching on, realizing that eco-friendly homes are not just a niche market but a growing demand.
With these new tax incentives, sustainable residential developments in Minsk are becoming more appealing. The government's support is not just about reducing carbon footprints; it's about creating a city that future generations will be proud to call home. This is a pivotal moment for Minsk, as it embraces a greener future.
Sources: Constructive Voices, Wint.ai
13) Property values in certain Minsk neighborhoods will rise due to government urban renewal initiatives
Government initiatives to promote urban renewal in Minsk are set to increase property values in targeted neighborhoods. One of the key reasons is the significant investment in projects like the transformation of the Minsk-1 Airport into Minsk Forest City. This project involves substantial funding for infrastructure development, including commercial plazas and public spaces, which typically enhance the attractiveness and value of surrounding properties.
Another factor contributing to rising property values is the increased demand for housing in revitalized areas. As urbanization continues to drive people to cities like Minsk, the demand for rental properties has surged, leading to higher rental prices. This trend indicates a growing need for urban accommodation, which can push property values upward.
Moreover, the government's efforts to stimulate the real estate market through tax incentives for first-time homebuyers have encouraged more investment from private developers. This initiative aims to boost home ownership and make buying a first home more appealing and affordable, further contributing to increased property values.
Sources: Sasaki, World Highways
14) Properties in cleaner, greener areas of Minsk will become more attractive due to environmental efforts to reduce pollution
In recent years, Minsk has made significant strides in improving its air quality, especially in its greener areas. The Air Quality Index (AQI) data from the past shows that these areas have consistently maintained a "Good" level, with a real-time AQI of 21, indicating a healthy environment for residents.
The government has been proactive in funding urban green spaces and pollution reduction projects. These initiatives are part of a broader effort to create a sustainable future for the city, which includes energy efficiency improvements and expanding forested areas. Such efforts not only help in reducing pollution but also make these areas more attractive to potential property buyers.
Consumer preferences have also shifted towards eco-friendly living, with many urban residents expressing a desire to live in neighborhoods with better air quality and more green spaces. This trend is reflected in the real estate market, where properties in cleaner districts are seeing higher demand and price appreciation. Media coverage further amplifies the benefits of living in green areas, highlighting improved health, higher property values, and a better quality of life.
Sources: Etic Hotels, AQI Dashboard, IEA
We made this infographic to show you how property prices in Belarus compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Demand for suburban properties will drop as young professionals choose city-center living
In recent years, we've seen a noticeable shift in the preferences of young professionals when it comes to choosing where to live. Back in 2023 and 2024, the demand for rental properties in city centers like Minsk began to rise significantly. This was largely due to changes in work patterns, such as the increase in remote work, which made larger city-center apartments with space for home offices more appealing.
Another factor contributing to this trend is the increase in property prices in central areas. In Minsk, for example, property prices in the city center rose by 5% due to strong demand and limited supply. This was driven by people moving to the city for job opportunities and the vibrant urban lifestyle. Young professionals, in particular, are drawn to the amenities and lifestyle options that city centers offer, such as cultural activities and social events.
Moreover, developments like Minsk World have introduced advanced urban concepts like the "15-minute city," where all necessary facilities are within walking distance. This includes everything from coffee shops to fitness centers, making city living even more attractive. The improved public transportation and infrastructure in these areas also play a crucial role, as they provide quick and easy access to different parts of the city, reducing commute times and costs.
Sources: Realting, Minsk Herald
16) Demand for smaller, efficient homes in Minsk will grow as minimalism becomes more popular
The trend towards minimalism has been gaining momentum over the past few years, particularly in 2023 and 2024. This shift is evident in Minsk, where there's a noticeable rise in the demand for smaller apartments. People are increasingly opting for compact living spaces that align with a minimalist lifestyle, which emphasizes simplicity and efficiency.
Another factor contributing to this trend is the increasing sales of multifunctional furniture. As people look to maximize their living space, they are turning to furniture that serves multiple purposes. Companies like Resource Furniture have seen a rise in sales, indicating a strong preference for solutions that make better use of available space.
Additionally, consumer surveys in Belarus and Russia have shown a growing preference for minimalist lifestyles. This shift is driven by a desire for simplicity, sustainability, and financial freedom. The popularity of the tiny house movement and micro-apartments further supports this trend, as these living arrangements emphasize living simply and efficiently.
Sources: Resource Furniture, Fine Creek Realty
17) Interest in homes with office spaces will grow in Minsk as remote work becomes more popular
Remote work is reshaping property preferences in Minsk.
In Belarus, many professionals, like software engineers, are embracing flexible work setups. This shift means they're on the hunt for homes with dedicated office spaces. As more folks work from home, having a spot to focus becomes crucial.
Real estate in Minsk is catching on, with listings now flaunting home office features. This isn't just a local trend; it's part of a global move towards work-friendly living spaces. People want homes that fit their new work-life balance.
Urban planners and developers are also in on it, designing areas that cater to remote workers. This makes properties with home office spaces more appealing to buyers and renters alike. It's all about making life easier for those who work from home.
Surveys show a big chunk of employees prefer remote work, at least part-time. This preference is driving the demand for homes that can double as offices. In Minsk, this means more interest in properties with office setups.
As the trend grows, expect more homes in Minsk to feature these work-friendly designs. It's a response to the rising need for flexible living spaces that accommodate remote work.
Sources: Himalayas, Remote People, CBRE
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.